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Free University of Bozen-Bolzano

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people attending a seminar

Event type Hybrid Event

LocationRoom BZ E3.22 | Universitätsplatz 1 - piazza Università, 1
Bozen
Location Information

Departments ECO Faculty

Contact Katarina Nemeckova
Katarina.Nemeckova@unibz.it

12 Mar 2026 12:30-13:30

Finding Justice? The Effects of Winning Labor Lawsuits on Workers’ Labor Supply

This seminar by Dr. Diogo Britto shows that winning labor lawsuits increase workers’ employment and earnings. Judge assignment shows effects from enforcement expectations, not reinstatement.

Event type Hybrid Event

LocationRoom BZ E3.22 | Universitätsplatz 1 - piazza Università, 1
Bozen
Location Information

Departments ECO Faculty

Contact Katarina Nemeckova
Katarina.Nemeckova@unibz.it

Winning labor lawsuits affects workers’ behavior and labor supply. To estimate causal effects, we leverage exogenous variation in winning probabilities from the random allocation of cases to judges with differing leniency. Winning leads to significant and persistent increases in employment and labor income. These gains are not driven by reinstatement with the original employer, which is rare in this setting. Instead, higher labor supply reflects increased expectations of judicial enforcement. Overall, positive court experiences raise enforcement expectations and individuals’ willingness to enter contracts.

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